Advanced Micro Devices beat analyst estimates for financial performance in third-quarter results released on Wednesday. It achieved a net income of US$134 million on revenue of $1.33 billion, as it continues to pressure number-one chipmaker Intel.
The company's latest results are an improvement over net income of $44 million on $1.52 billion in revenue in the same quarter a year ago and net income of $89 million on $1.22 billion in the second quarter of 2006.
When memory products sales are excluded, AMD's sales grew nine percent from the previous quarter and 32 percent from last year's third quarter, says AMD's chief financial officer Robert Rivet..
However, AMD's operating margins slipped in the third quarter to 51.4 percent, down from 56.8 percent in the previous quarter and 55.4 percent in the year-ago quarter. AMD attributes the decline to lower average selling prices for processors used in desktop computers.
AMD has been taking semiconductor market share away from rival Intel in the last year with new dual-core processors, forcing Intel into a defensive position.